Circular No. 715/1995 — TDS on interest — definition of credit
Date: 1995-08-08 Status: ACTIVE Category: TDS / TCS Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)
Summary
Clarifies that ‘credit’ for TDS purposes means credit to the account of the payee in the books of the payer. TDS obligation arises on credit or payment, whichever is earlier.
Key Directions
- ‘Credit’ means entry in books of payer — irrespective of account nomenclature.
- TDS obligation arises on credit or payment, whichever is earlier.
- Provision for interest in books constitutes ‘credit’ for TDS purposes.
Applicability Under IT Act 2025
Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.
| Old Section (1961 Act) | New Section (2025 Act) | Consistent? |
|---|---|---|
| 194A | 393 | Yes |
Cross-References
Act Sections
Related Circulars
- None identified
Key Case Law (Circular Supremacy)
- To be populated — cases where this circular was cited/applied
Full Text
Full text to be added — see raw/circulars/ for PDF when available
Source
- Official: incometaxindia.gov.in/circulars